China hits back with tariffs on $60bn of US goods Country says move is response to ‘US unilateralism and trade protectionism’
China has hit back at the US, announcing on Monday that it would raise tariffs on $60bn worth of US goods after the Trump administration pushed ahead with new punitive duties on Chinese goods on Friday. Beijing said on Monday that it would raise tariffs on those goods to between 10 per cent and 25 per cent starting on June 1. “China’s adjustment of tariff-adding measures is a response to US unilateralism and trade protectionism,” said China’s Ministry of Finance in a statement. The fresh escalation in the tit-for-tat tariff battle that has built up over the past year further eroded hopes of a quick resolution to US-China trade discussions and sent US stock futures deeper into the red. S&P 500 futures were down 2 per cent while Treasury prices extended their rally, pushing yields lower. Yield on the benchmark 10 year note was down 3.6 basis points at 2.4174 per cent. The response from Beijing comes just three days after the White House more than doubled its levies on $200bn of Chinese goods to 25 per cent. The Trump administration has threatened to hit a further $300bn of Chinese imports with the 25 per cent tariff rate if there is no progress in trade negotiations. In response, China’s finance ministry said on Monday the tariff increase by the US “violates” the agreement between the two countries to resolve their trade differences through talks. “In order to defend the multilateral trading system and defend its legitimate rights and interests, China has to adjust tariffs on some imported goods originating in the United States,” it added. Earlier on Monday, President Donald Trump warned Beijing not to retaliate against the rise in tariffs his administration pushed through last week and said China would be “hurt very badly” if it does not agree to a trade deal
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